OREANDA-NEWS. Lucapa Diamond Company Limited (ASX: LOM) ("Lucapa" or "the Company") and its partners, Empresa Nacional de Diamantes E.P. ("Endiama") and Rosas & Petalas, are pleased to announce that alluvial mining operations continued ahead of plan in August 2016 at the Lulo Diamond Project in Angola.

The recent investment in earth moving fleet and equipment saw Lulo achieve record monthly processing volumes of 22,870 bulk cubic metres (bcm) in August, surpassing the 21,114 bcm achieved in the previous month.

Diamond production for August at Lulo totalled 2,882 carats, the second best month on record. The August production included 39 Special diamonds (individual stones weighing > 10.8 carats) of up to 80.5 carats.

This takes to 98 the number of Specials recovered from Lulo in the first two months of the September 2016 Quarter as the Lulo partners continue to mine high-value areas such as Mining Block 8.

The August production also included more fancy coloured diamonds, including pink and yellow gems.

The average monthly diamond grade for August was 12.6 carats per 100 cubic metres, while the average size of the diamonds recovered in August was 1.7 carats.

ENDIAMA chairman Eng. Antonio Carlos Sumbula, who was in Perth last week for the Africa Down Under conference where he made a presentation, said the results from Lulo were extremely encouraging.

"Lulo continues to produce diamonds of the highest quality and the investment in new fleet and equipment is delivering more positive results."

Lucapa will provide further details on mining and exploration at Lulo in the Company's September 2016 quarterly report.

For and on behalf of the Lucapa Board.

Forward-Looking Statements

This announcement has been prepared by the Company. This document contains background information about the Company and its related entities current at the date of this announcement. This is in summary form and does not purport to be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this announcement. This announcement is for information purposes only. Neither this document nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction.

This announcement may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction. This document does not constitute investment advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this representation are not intended to represent recommendations of particular investments to particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.